Next takes stake in Reiss in new strategic partnership

In the agreement, Reiss will transfer its online platform, warehouse, distribution and logistics to the Next Total Platform, making use of Next’s extensive infrastructure capabilities to aid its future growth in the UK and overseas.

Upon the completion of the deal, Next will make a £33m equity investment and £10m debt investment in Reiss, financed by Next’s own cash resources.

Reiss will retain its management autonomy and creative independence, leveraging its strengths in luxury design alongside Next’s operational prowess.

The brand will continue to have its own board of directors and be headquartered in London under the leadership of chief executive Christos Angelides.

The partnership is expected to generate strong future growth at a valuation of around £200m and it is anticipated Reiss will go live on the Total Platform by February 2022.

In its most recent results in the year to February 1, 2020, Reiss achieved turnover of £227.4m through all its sales channels, up 22% year on year.

The acquisition is expected to have little impact on Next’s group profits with a positive contribution expected in future.

Next boss Lord Wolfson said: “Reiss is an outstanding brand with enormous potential and a first-class management team. 

“We are excited to see what can be achieved through the combination of Reiss’s exceptional product, marketing and brand-building skills with Next’s Total Platform infrastructure.”  

Angelides added: “I believe the partnership with Next will be transformational for Reiss’ operational effectiveness. Next’s infrastructure will ensure Reiss is not only more efficient as a business but more effective at serving its customers directly through Reiss stores, at Reiss.com and through its worldwide partners. 

“Whilst we will continue to focus on creating authentic and timeless collections, today’s announcement provides a great opportunity for Reiss to realise the brand’s global potential as a modern fashion house.”